Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,180 10, 200 12,400 740 24,520 $ 1,280 7,700 10,900 600 20,480 10,900 47,577 58,477 $82,997 10,900 38,035 48,935 $69, 415 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $19,500 1,100 210 20,810 $18,800 760 210 19,770 8,500 29,310 8,500 28,270 700 4,000 4,700 48,987 53,687 $82,997 700 4,000 4,700 36, 445 41,145 $69,415 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $77,865 $ 65,000 Cost of goods sold 38,445 38,000 Gross margin 39,420 27,000 Selling and administrative expenses: Selling expenses 10,700 10,300 Administrative expenses 6,500 6,800 Total selling and administrative expenses 17,200 17,100 Net operating income 22,220 9,900 Interest expense 850 850 Net income before taxes 12 e 21,370 9,050 Income taxes Net income 5420 5, 430 Dividends to common stockholders 280 525 Net income added to retained earnings 12,542 Beginning retained earnings 36,445 31,540 Ending retained earnings $48,987 $36,445 3,620 8,548 12,822 4,905 Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. erage collection 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) days 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Average sale period 5. Operating cycle 6. Total asset turnover days days
